Which of the following is the best definition of a going-private transaction?
A) The complete absorption of one company by another, where the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity.
B) Going-private transactions in which a large percentage of the money used to buy the stock is borrowed. Often, incumbent management is involved.
C) Typically an agreement between firms to create a separate, co-owned entity established to pursue a joint goal.
D) A targeted stock repurchase where payments are made to potential bidders to eliminate unfriendly takeover at-tempts.
E) All publicly owned stock in a firm is replaced with complete equity ownership by a private group.

Question

Quizplus · Accepted Answer

E) Going-private transactions involve the repurchase of all publicly owned shares, resulting in the company becoming privately owned.

Which of the Following Is the Best Definition of a Going-Private